Save Article

Reserve Fund Holders May Get '10 Tax Loss

By

Daisy Maxey

Updated Sept. 9, 2010 5:42 p.m. ET

NEW YORK—Beleaguered investors in the Reserve Primary and Reserve Yield Plus funds may finally be getting a break—in the form of a recognizable tax loss.

The funds have changed their classification for U.S. federal income-tax purposes, which will mean that taxable shareholders, depending on their individual tax situations, should be able to recognize a loss on their shares of each fund, Reserve Management Co., the funds' adviser,...